“The money from Eurobonds should be used in the most effective way,” he said, noting that Russia provided financial support to Ukraine “in a very critical situation for Ukraine’s economy”.

Azarov said that conditions for crediting Ukraine’s economy were “exceptionally beneficial”.

“However, this loan is to be repaid. And there could be no question of using the funds to solve current problems, thus only wasting these resources,” he said. “The loan will be employed for economic modernization.”

In earlier comments, the prime minister said that three billion dollars of the Russian loan would be spent on social payments in late 2013 and early 2014.

“The first three billion dollars of the loan will be spent on wages, pensions and social benefits,” he said. “The money will be used to cover these mandatory budget payments in December 2013, and in January and the first half of February 2014.”

Some of the funds would be spent to pay external liabilities, Azarov said, adding "I hope the situation in Ukraine will start improving by the middle of February.”

Ukraine's President Viktor Yanukovich and Russian head of state Vladimir Putin announced the bailout for Kiev on December 17 after talks in Moscow. It was reported that Russia would purchase $15 billion dollars in Ukrainian government bonds, starting this month.